Question

AUTOMAKERS BECOME SOFTWARE COMPANIES which does not exist as of yet. Ford has doubled its ways for vehicles to communicate with one another industry is working on technology that will allow Automakers are finding that software is a way of adding more "value" and freshness to their products now devote resources to updating and testing their production. It takes Ford Motor Company, for exam updated saftware to their customers. Car companies ple, about two and a half years to plan, design, and must be finalized long before the car rolls off the line. But the auto makers can create a new software interface for a car within months and update it again and again over the life of the car without much lead plagued smartphone manufacturers and app develop g with the best way to roll out soft ware upgrades to its customers. The company has been mailing USB sticks to 250,000 customers whose time. This enables Ford and other auto makers to significantly improve the driving experience and add to innovate with software and apps Its MyFord running the My Ford Touch interface. The stick con tains a software upgrade that will improve navigation able for select vehicles with controls for navigation, music, phone integration, and temperature. Fard has the ability to control car temperature. The upgrade upgraded this interface and the Sync software behind also contains code that will upgrade system speed the interface, adding tablet and smartphone integra- and improve the interface based on common criti- tion and better voice response. In 2010 Fard added support for the online music streaming service Pandora, which is very popular among young poten- software upgrades this way, the company hopes that tial buyers. This update enahles drivers to connect their tablets and smartphones to the Sync system to Web site for software upgrades on their own. Though access music and other apps using voice commands. most car owners are used to the technology in their Chairman Bill Ford Jr. has championed the use of software to alleviate urban congestion by investing in car, newer cars are poised to change all of that. customers will get into the hahit of checking the Fard cars remaining constant throughout the life of the traffic in the biggest cities. Theoretically, technology neers, whose job is to analyze how their customers might help cars to avoid traffic jams, reserve parking interact with the software in their cars. Often, these To manage vehicles in this way, cars need to be connected to some kind of central system that would coordinate with public transit and other transportation methods, and to do this, cars need to be equipped with software that can monitor and enhance vehicle function at the most basic levels. interface, so Ford moved the most commonly used increased their font size, relegating the rest to sub- menus. Feedback has been positive. Ford has also asked dealers to dedicate more time and personnel to The eventual system would require that cars feed increasing amounts of information to systems whose Chapter 3 Information Systems, Organizations, and Strategy 131 hands on technology training to help customers mas who have grown up using Facebook are less likely to care about privacy and features that collect highly targeted information about a car's location and driv- GM, Daimler, and other companies are all devel- aping new features for their cars that operate online in the cloud. Users will be able to remotely track in mobile apps, hoping to market them to their cus- again) and diagnose problems with the car, such as low tire pressure or the need for an oil change. Corporations will be able to track employee use of company cars by interpreting car sensors and engine skeptical of the decision to invest that much money increasingly attractive selling point for customers of its BMWi electric and hybrid cars. Although the future of cars sharing information with other nearby and analyze the data from customers' cars to identify recalls. Just as with apps, the possibilities are limitedpossibilities afforded by smart software and apps. Sources: Jaclyn Trop, Tired of Silicon Valley? Thy Motor City," Ne ark c, July 1, 2043, Lan Scherr and Mike Rascy, "Deive into puter systems to improve app function, which raises the Future" Wal Sreet Josroal, March II, 201 3; Michelle Maisto, GM will allow its app developers to access March 28, 2013; Ian Sherr, "Cars Pump Up IQ To Get Edge," Wall Street journal, January 13, 2012, Chris Murphy, "4 Ways Ford is Exploring Next-Gen Car Tech,"Informanion Weck, July 27, 2012 Mike Ramsey, "Avoiding Gridlock with Smart Autos Wal Street believe that automakers will make mistakes as they learn how to properly handle sensitive customer data and to prowide robust privacy options. On the other CASE STUDY QUESTIONS I. How is software adding value to automakers' prod. 3. What value chain activities are involved in 2. How are the automakers benefiting from software . How much of a competitive advantage is software

Answer 1

1.With software I don't make her's have been able to improve the passenger experience at new features two cars years after they are built. Software and apps allow for automakers products to be synchronized with the customer's smart phones and tablets, which gives the customer a better experience with the product.

2.Automakers are benefiting from softwareenhanced cars because they are able to get feedback from the customers’ usage of the product, which allows the automaker to come up with a more convenient product or service for the owner. Customers are now given theoption to have services available to them that they would prefer and the use of these technologies are more simplified.

3. What value chain activities are involved in enhancing cars with software? Automakers devoted resources to updating and testing the software as well as establishing ways to provide the updated software to their customers. Inbound logistics, outbound logistics and service are some of the value chain activities involved in enhancing cars with software.

4.With the hardware of automakers products being very common across the board, software is providing automakers with a competitive advantage. Allowing the customer to have a more efficient user experience does this. With the functionalities that come withincorporating software into automakers product's, automakers gain a competitive edge over the other based on how enhanced the experience of the product is based on the software.